CAIE A-Level Economics 2.1.4 Supply determinants
Practise linking costs, technology, subsidies, taxes and alternative outputs to firms' willingness and ability to supply a product.
- Syllabus
- 2026–2028
- Course
- Economics 9708
- Level
- AS
Exam points
- explain how costs, technology, taxes or subsidies affect supply of a product
- apply opportunity cost to choices between alternative outputs,
2.1.4—Supply determinants question 1
[Maximum number: 8]
Explain the determinants of supply for an agricultural product, such as rice, and consider which of these determinants is likely to be of the greatest significance at the present time. [8]
Follow the point-based marking guidance at the top of this mark scheme and award:
up to 3 marks for AO1 Knowledge and understanding, up to 3 marks for AO2 Analysis, and up to 2 marks for AO3 Evaluation.
AO1 Knowledge and understanding (max 3 marks)
A knowledge and understanding of the determinants of supply for an agricultural product, such as rice (there should be at least two determinants):
- physical factors, e.g. climate and soil
- institutional factors, e.g. land tenure and land reforms
- infrastructural factors, e.g. irrigation and storage facilities
- the price of rice and the prices of other agricultural products.
AO2 Analysis (max 3 marks)
An analysis of the importance of these determinants of supply for an agricultural product, such as rice. For example, if rice is relatively easy to store, the supply will be more elastic.
AO3 Evaluation (max 2 marks)
Offers a valid judgement on which of these determinants of supply for an agricultural product, such as rice, is likely to be of the greatest significance at the present time (1) to reach a conclusion. (1)
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